Magellan Investment Partners, an Australian investment management company, released its second-quarter 2026 investor letter for “Magellan Global Opportunities Fund”. A copy of the letter can be downloaded here. The Fund invests in companies with sustainable competitive advantages that generate returns exceeding their cost of capital over time. In Q2, the global stock market rose 13.8%, reversing the stagflation narrative, with energy prices declining after US–Iran tensions eased. Focus shifted to chip stocks and data centre beneficiaries. Regionally, markets’ performance reflected the tech rebound and energy decline. Macro backdrop improved in the quarter with relief from avoiding a severe energy shock, though growth and inflation concerns kept central banks cautious. The portfolio gained 4.3% in the quarter, lagging the 12.5% benchmark rise, driven by bubble-like conditions in semiconductors and data centre supply chains. For insights into their key selections for 2026, please review the Strategy’s top five holdings.
In its Q2 2026 investor letter, Magellan Global Opportunities Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a top contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On July 15, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $419.48 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -9.23%, and its shares gained 70.80% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.18 trillion.
Magellan Global Opportunities Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor update:
“The largest contributors to the portfolio’s performance over the quarter were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), UnitedHealth Group and Adidas. TSMC is a beneficiary of both AI chip investment and the data centre expansion cycle. In response to strong AI chip demand, TSMC raised its 5-year revenue growth CAGR by 5 points to 25% pa. While the growth will be supported by a large step up in FY26 capex (benefiting semi cap vendors like ASML), TSMC also raised its long-term gross margin guidance, signalling confidence in its ability to drive productivity, cost efficiencies and pricing power.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 6th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 234 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the first quarter, up from 224 in the previous quarter. In Q1 2026, Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue increased 6.4% (in U.S. dollar terms) sequentially to $35.9 billion, exceeding the guidance. While we acknowledge the risk and potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared Mar Vista U.S. Quality Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
